Strong Buy
Strong yield and safe coverage. ROI is excellent.
Score Breakdown
At $350,000 (1.8x SDE), this is priced at or below the conservative end. SDE of $192,000, $140,995/yr free cash after salary and debt. If the financials verify, this is a solid acquisition.
Annual revenue: $280,000 COGS: $42,000 — Gross margin: 85.0% EBITDA: $180,000 SDE (Seller's Discretionary Earnings): $192,000 SDE is what matters for small business valuation. It's 68.6% of revenue. ✓ SDE margin above 35% is strong — this business has real pricing power or low overhead.
For this business profile in Phoenix, AZ, typical SDE multiples run 3x–4.5x (laundromats are semi-passive with stable cash flow — solid multiples; strong margins command premium multiples). • Benchmark basis: laundromat multiple range based on national semi-passive business transaction comps; adjusted up for strong 35%+ SDE margin • At 3x SDE: $576,000 • At 4.5x SDE: $864,000 Asking price: $350,000 (1.8x SDE multiple) ✓ The asking price is below the bottom of the range — potentially a bargain if the SDE holds up.
Based on a conservative SDE of $192,000: • Your disciplined range: $576,000 – $864,000 Anything above $864,000 means you're paying for projected growth or "potential" — that's the seller's upside, not yours. ✓ The listing is within your disciplined buying range.
$192,000
$180,000
1.82x
1.25x
$140,995
1955.59%
$4,250
$175,301
Mesa Coin Laundry — 48 Machines Market: Phoenix, AZ Purchase price: $350,000 SDE: $192,000 SDE Multiple: 1.82x Cash flow: $140,995/yr Score: 89/100 Verdict: Strong Buy Full analysis: dealforgehq.com/share/example-phoenix-laundromat
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sba 7a
10%
10.5%
10 years
Benchmarks used in this analysis (cap rates, SDE multiples, expense ratios) are derived from national averages by asset class and business type, drawing on industry data sources such as CBRE, Marcus & Millichap, BizBuySell, and IBBA market reports. These are broad benchmarks — they are NOT specific to your local market. Actual cap rates, multiples, and pricing in your area may differ significantly based on local supply/demand, population trends, economic conditions, and comparable sales. Always validate with local comps, broker opinion, and an independent appraisal before making an offer.
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Disclaimer: This analysis is for informational purposes only and does not constitute financial, legal, tax, or investment advice. All projections are estimates based on user-provided inputs. Conduct independent due diligence before making financial decisions.
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